Companies have been reticent to hire, citing concerns over government policies and an unpredictable economy, but those issues haven't stopped a Norwalk business from dramatically expanding its staff.

Now, equipped with $5 million in funding from the state Department of Economic and Community Development, Datto, a company that specializes in providing data backup technology for corporate clients, plans to continue hiring and expanding into remodeled space at the Merritt 7 office complex in Norwalk.

Datto will be eligible for $2.5 million in loan forgiveness if it retains 150 full-time jobs and creates 100 full-time jobs within two years. The company, which recorded revenue of nearly $50 million in 2013, had only 50 employees at the end of 2010.

Approved Friday by the State Bond Commission, Datto will receive a loan of $5 million at an interest rate of 1 percent for a term of 10 years. Principal payments will be deferred for the first three years. Additional forgiveness is possible if the company reaches certain job milestones. If Datto creates a total of 250 new jobs within three years, the company will qualify for a grant of $1 million. The grant grows to $2 million if the company creates a total of 350 new jobs within five years. DECD will also provide a $5,000 job training grant for Datto's first 200 new hires.

When Datto moved to Building 101 about 2 1/2 years ago, it occupied a majority of the seventh floor with 25 employees. It later added the fourth floor as it hired more staff, and when the renovations and moves are finished the company will occupy the fifth, sixth and seventh floors, according to CEO Austin McChord, who founded the business seven years ago.

"We're currently at 270 employees globally, including about 200 in Norwalk. We hired 144 employees worldwide last year, including more than 100 in Norwalk," he said. "We plan to hire around 100 more in the next 12 months (in Norwalk).

Staff will be added in technology support, software development and sales and marketing.

The state funding will be used to defray the $15 million in expansion costs and equipment purchases, McChord said, adding that several businesses will move to allow Datto to complete the task.

"We currently have 65,000 square feet. We'll expand to 100,000 square feet. It's a complicated set of moves," said McChord, who credited Marcus Partners, manager of the six-building office complex, for organizing the expansion and relocation.

"Companies like Datto are developing the new products, technologies, patents and high-wage STEM (science, technology, engineering and mathematics) jobs that are keeping our economy competitive," Gov. Dannel P. Malloy said in a statement. "On our end, we have been making strategic investments in our STEM talent pool and higher education to give these companies access to the engineers, technologists, scientists and inventors at the core of our workforce."

Connecticut will continue to invest in attracting and growing innovative companies and industries to ensure a sustainable economic future, he said.

"From the very beginning, I've been committed to keeping Datto Connecticut-based and employing the state's best engineers, technicians and workforce overall," McChord said. "To receive such support from the state of Connecticut is incredible for the company and for a Connecticut native like myself."

DECD Commissioner Catherine Smith said Datto was a good candidate for the financial assistance, noting its status as a vendor of hybrid cloud-based backup, disaster recovery and intelligent business continuity technology and support to more than 5,000 managed service providers.

"Datto is a leader in one of the hottest sectors of the Internet and information technology industry," she said.

Datto is ranked 38 on Inc. Magazine's 31st annual "500" and in September 2013 was recognized at the annual Marcum Tech Top 40 Awards as the fastest growing technology company in Connecticut. Datto announced in September 2013 that it has raised $25 million in its first round of venture capital financing.